UPDATE 1-Lenovo says in no rush to issue bonds due to market volatility
* Lenovo has no immediate plans to issue bonds due to uncertain markets, ample cash
* Awaits market to become more stable before considering the proposed issue
SINGAPORE, July 11 (Reuters) - Lenovo Group Ltd, the world's top PC vendor, has no plans to issue bonds in the near term because it has sufficient cash in hand and because of the volatility in global markets, its chief financial officer said.
Lenovo, which has been acquiring companies over the past few years to consolidate its market position, conducted roadshows in Hong Kong, Singapore and London in June, prompting expectations it would soon tap the market for its first U.S-dollar-denominated note issue.
"The debt market was actually in a turmoil probably a couple of weeks ago," CFO Wong Wai Ming told Reuters in a telephone interview.
"So we are still observing the market, so when the market becomes stable, then we will decide on how to deal with this proposed bond issue. Obviously we are not in desperate need of cash in the short term."
The company is cash-rich, with free cash flow around $1.6 billion at the end of 2012, but it would still need to raise funds for any large acquisition.
Lenovo has hired Credit Suisse and Goldman Sachs as the joint global coordinators for the issue, Thomson Reuters publication IFR said.
IFR added that joint lead managers and bookrunners included BNP Paribas, BOC International, HSBC , Mitsubishi UFJ Securities, Mizuho Securities , The Royal Bank of Scotland and Standard Chartered.
Lenovo has spent billions of dollars over the past few years in acquisitions. Purchases include Brazilian electronics maker CCE last year, Germany's Medion AG in 2011 and IBM Corp's PC business in 2005.
There have been rumours in the market for the past year that Lenovo was interested in acquiring phone makers Nokia Oyj and BlackBerry as well as NEC Corp's mobile phone business and IBM's low-end servers.
Wong declined to name any acquisition targets.
"We continue to look at various opportunities that will work for us," he said. "There are certain areas in both consumer, as well as enterprise that we definitely consider as our growth areas."
- Moscow fights back after sanctions; battle rages near Ukraine crash site
- Carnage at U.N. school as Israel pounds Gaza Strip |
- U.S. economy bounces back in second quarter |
- EU and U.S. announce new sanctions on Russia over Ukraine |
- Obama says strains over Ukraine not leading to new Cold War with Russia